Fiji Commits to its First Sovereign Parametric Insurance Cover with PCRIC
Concurrent with the Pacific Catastrophe Risk Insurance Foundation (PCRIF) Council of Members (CoM) meeting held in Morocco on the margins of the World Bank / IMF Annual Meetings, Fiji achieved a significant milestone by signing its Commitment Letter to participate in PCRIC’s tropical cyclone and excess rainfall parametric insurance program. This signified Fiji’s steadfast commitment to strengthening the nation’s resilience against such potential perils.
The parametric insurance policies will allow Fiji to receive rapid payouts within 10 to 20 days, should a tropical cyclone exceed a predetermined windspeed in the vicinity of the islands, or should a rainfall induced flood impact a predetermined number of people. Such rapid payouts can be used immediately in the aftermath of a disaster to support relief and recovery efforts.
The Commitment Letter was jointly signed by Hon. Professor Biman Chand Prasad, Fiji’s Deputy Prime Minister and Minister for Finance, Strategic Planning, National Development, and Statistics, and PCRIC’s Board Chair, Ms. Sarah-Jane Wild.
This critical progress could not have come at a more fitting time, perfectly aligning with Fiji’s approaching annual tropical cyclone season, typically spanning from November to April.
Addressing the significance of this innovative step, the Hon. Minister highlighted, “This is a region where we hope and pray that we don’t get hit by a devastating cyclone or flood. When these things happen, we rely on readjustment of our existing budgets, or more importantly, we rely on donors and our development partners. This innovation is very important in the sense that it gives us ownership, empowering Pacific Island countries to devise their strategies for reducing disaster risk and funding availability.”
He emphasised further, stating, “In our part of the world, insurance is not always the foremost consideration in the minds of our people. This, we hope, will position us collectively in a much stronger regional stance to devise and create a risk management strategy, enabling us to better manage our risk and support our people in times of need.”
PCRIC’s Board Chair, Ms. Sarah-Jane Wild, underscored their excitement, noting, “We’re thrilled that we’ve been able to provide the first parametric insurance at a sovereign level for Fiji. We’ve worked closely with the Fiji team on the technical aspects to design this product that caters to Fiji’s specific needs.”
“Parametric insurance offers the government the opportunity to access funds quickly in a disaster. Fiji, being an influencer in the wider Pacific region, will help in expanding membership as part of the broader regional approach,” she shared.
The signing ceremony was attended by the PCRIC Management Team, comprising CEO Mr. Aholotu Palu, Regional Coordinator Ms. Akosita Drova, and Premium Financing Strategist Mr. Charles Owen. Additionally, representatives from the United Kingdom, Mr. Andrew Masters, and Japan, Mr. Tsuyoshi Hyokai, were also in attendance, highlighting the collaborative effort invested in enhancing Fiji’s resilience against natural disasters.
